If your employer offers a tax-deferred retirement plan, such as a 401k or 403b, any contributions you make to the plan are pre-tax, meaning that the amount you contribute is not included in taxable wages. Due to this, the contributions are not eligible for a deduction on your tax return.
Review the IRA Contribution section of the program to determine if you can make a deductible contribution to an IRA. This could lower your taxable income if there is a credit available on the tax return for after tax contributions to an IRA.
- From within your TaxAct® return (Online or Desktop) click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click IRA Contributions to expand the category and then click the appropriate selection based on your situation
- The program will proceed with the interview questions for you to enter the appropriate information
After you enter the information requested in this section of the Q&A, the program will calculate for you the amount of deductible contribution (if any) you can make.
For additional information, refer to IRS Publication 590-A Contributions to Individual Retirement Arrangements (IRAs)